JP Power share price zooms 9%. Is Adani takeover of JAL a likely trigger behind the surge?

Shares of Jaiprakash Power Ventures (JP Power) zoomed 9% in intraday trade on Wednesday, November 19, amid reports that Adani Group will likely pip metal and mining major Vedanta to acquire bankrupt infrastructure firm Jaiprakash Associates (JAL).

Small-cap stock JP Power gained as much as 9.12% to hit the day's high of ₹19.25 on the National Stock Exchange (NSE) and BSE. As of 11.50 am, JP Power share price was trading over 5.5% higher at ₹18.63.

Analysts had earlier told Mint that acquisition by a well-managed and financially strong Adani group not only bodes well for JAL but also for JP Power, wherein JP Associates holds a 24% stake.

According to multiple media reports, creditors to JP Associates opted for Adani's bid over Vedanta's despite it being lower in value.

While Vedanta's bid of ₹17,000 crore is higher than Adani's ₹13,500 crore, creditors, mostly Indian banks, opted for Adani because it included larger upfront payments preferred by stakeholders, as per a Reuters report.

Besides Adani and Vedanta, other bidders included Dalmia Bharat, Jindal Power, and PNC Infratech. Controlling shareholder Manoj Gaur had also submitted a last-minute bid, but later withdrew it, as per the report.

More to come…

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